Mexico FinTech News
Stark Contrast Between MELI and NU in 4Q24
MELI: Fintech strength in Argentina; acquiring accelerating in Mexico and Brazil, more than offsetting FX headwinds; improving NPLs across the board – it was a bull’s dream of a report, and the shares reacted accordingly, rallying 7% on Friday, sending the stock to an all-time high, cementing its status as LatAm’s most valuable company. Things were decidedly less auspicious for the region’s other fintech giant: Nu’s shares declined 19% on Friday, for a performance delta of more than 30% in the past week relative to MELI.
Nu’s profits in USD surged over 50% YoY and were stable QoQ, despite significant FX headwinds, but margins contracted concerningly, and management stated they’d slow down originations in riskier segments. Ordinarily, that’s the sort of caution investors like from traditional banks, but Nubank is far from a traditional company, and (some of) its investors clearly don’t appreciate slowdowns, whatever the macro might be, and the Brazilian macro picture is far from pretty. And then, of course, is the fact that, for all that narrative about conquering the whole of Latin American financial services, Nubank is essentially a Brazilian pure play with small money-burning outposts in Mexico and Colombia, accounting for about 10% of assets and, perhaps understandingly given how little progress has been made in reaching profitability in either country, warranted just a few passing mentions in the results presentation.
There is, to be sure, a long path ahead for both companies, and some might fairly point out that, other than reporting on the same day this quarter, their timings in the market are quite different (in fact, it was MELI that plunged 16% after 3Q24 earnings). For now, however, the pressure to show improvements will be much more on Mr. Vélez than on Mr. Galperin.
Mercado Libre results: presentation, press release / Nubank results: presentation, press release.
Openbank, Santander’s Digital Bank, Officially Launches in Mexico
Santander’s digital bank Openbank has launched in Mexico, offering digital savings accounts with 10% yields, cashback on online purchases, debit and credit cards, and free access to Santander’s 10,000 ATMs. This initiative is part of Santander’s $2 bn investment strategy in Mexico, aimed at combining fintech innovation with traditional banking.
El Economista, 02/18/25, Edgar Juárez: “Openbank, Santander’s digital bank, officially started operations in Mexico” Other Sources; El Financiero, Milenio, El universal
Aviva Receives Credit Line to Triple its Client Base in Mexico
Mexican fintech Aviva secured a MXN$90 mn credit line from Addem Capital and Banco Covalto to expand its customer base. This funding will support Aviva’s “phygital” strategy, which integrates physical kiosks and digital platforms to provide accessible credit of up to MXN 20,000 without requiring income proof or credit history. This is Aviva’s second funding round within the past year; the company aims to reach profitability in 2025.
Milenio, 02/18/25, Alejandro Castro: “Aviva receives credit line to triple its customers in Mexico”
VEMO Raises US$63.7 mn to Boost Electric Mobility in Mexico
Mexican electric mobility company VEMO secured US$63.7 mn to expand its electric vehicle fleet and charging infrastructure. The funding round was led by Beel Credit, Banco Covalto, Kapital, and Promecap. VEMO offers EV leasing, fleet management, and operates one of Mexico’s largest EV ride-hailing fleets. With over 550 charging stations nationwide, the company plans to expand its leasing program for ride-hailing drivers and promote electric transport adoption in Mexico.
LatamList, 02/21/25, Ian Gallagher: “VEMO raises US$63.7 mn to expand electric mobility in Mexico”
Additional reading…
Argentinian startup Ripio, which integrates blockchain technology with local fiat currencies, has been authorized by Mexico’s National Banking and Securities Commission (CNBV) to operate as a money transmitter. Through its B2B unit, Ripio Business, the company will provide cross-border payment solutions for startups, SMEs, and large corporations. The company will be competing with the highly successful and profitable Bitso Business which also deploys blockchain and stablecoins to now account for 10% of the remittance market between Mexico and the US.
Stori launched its second co-branded card in Liga MX with Club Santos Laguna. The card offers 2% cashback on official store purchases, no annual fee for life, and credit lines of up to MXN 20,000; it is backed by Mastercard. The initiative boosts brand visibility through advertising on Santos Laguna’s uniforms and at Estadio Corona, and follows Stori’s other credit card promotion deal with Atlas FC.
LatAm FinTech News
N5 Raises US$20 mn to Invest in AI Agents for Banks in Brazil
Brazilian fintech N5 secured US$20 mn to enhance its AI-driven banking solutions, focusing on Open Finance. The funding will support the development of AI agents “Alfred” and “Pep,” designed to automate data handling and replicate top employees’ efficiency. Backed by Alexia Ventures and Scale-Up Ventures, N5 plans to double its revenue and client base in 2025, serving major clients like Santander and Mastercard.
Latam Fintech, 02/20/25, Staff: “N5, Brazilian fintech focused on Open Finance, raises US$20 mn to invest in AI agents for banks”
B2gether Launches “4TE Group” to Offer Business Loans in Brazil
Brazilian fintech B2gether, specializing in foreign exchange, has expanded into corporate lending with the launch of 4TE Group. Addressing limitations in traditional banks’ credit terms, 4TE offers flexible financing solutions, including import/export credit lines and receivables financing. With an initial R$3 bn in investment funds, the company has already reviewed over US$344 mn in loan requests. B2gether aims to build a comprehensive financial ecosystem, combining forex and lending services for global businesses.
Latam Fintech, 02/20/25, Staff: “B2gether, fintech focused on Brazil’s FX market, launches new lending business “4TE Group” to offer business loans”
Additional reading…
LAVCA’s “2025 LAVCA Trends in Tech” report offers detailed insights on venture capital activity in Latin America, including sector-specific investment data, trends in funding rounds, and emerging themes such as the adoption of AI-powered enterprise software, resurgence in agtech funding, and evolution in healthtech and biotech.
Global FinTech News
Capital on Tap Secures US$750 mn Funding to Accelerate Small Business Growth
Capital on Tap, a fintech offering tailored financial solutions to small businesses, secured US$750 mn in funding from top-tier investors. This capital will significantly expand its lending capabilities in the US and UK, enhancing the speed, flexibility, and accessibility of credit. The funding allows SMEs to effectively manage cash flow, invest in growth, create jobs, and maintain financial stability. This reinforces Capital on Tap’s dedication to empowering small business owners and supporting their resilience and economic contribution.
FF News, 02/20/25, Staff: “Capital on Tap Secures US$750 mn in Landmark Funding Facilities to Accelerate Small Business Growth”
Additional reading…
KPMG’s biannual Pulse of Fintech report (18 February) shows that 2024 was challenging for global fintech, with investment at $95.6m and 4,639 deals—seven-year lows. Macroeconomic headwinds, geopolitical tensions, and high-profile elections drove uncertainty, especially in M&A and PE. The Americas led funding at $31bn, followed by EMEA ($7.3bn) and ASPAC ($5.5bn). Payments remained the top subsector, drawing about $31bn, with digital assets and regtech following.
Download PDF: MI-MxFintechChatter-022425